Mawson 2025 Q1 Earnings Narrowed Losses by 98.4%

Mawson (MIGI) reported its fiscal 2025 Q1 earnings on May 15th, 2025. Mawson’s performance showed significant improvement, with net losses narrowing by 98.4% compared to the previous year, although revenue figures did not meet expectations. The company maintained its revenue guidance for Q2 2025, projecting approximately $13.8 million, consistent with Q1. Mawson's ongoing developments are anticipated to enhance operational capacity, potentially reaching 153 MW. The focus remains on expanding digital colocation services to meet enterprise customer demands.

Revenue

Mawson's total revenue for Q1 2025 fell by 26.4% to $13.81 million from $18.77 million in the prior year. The digital colocation segment generated $10.43 million, leading the revenue streams. Energy management contributed $3.06 million, while digital assets mining added $320,625. These figures highlight a shift towards colocation and energy management as key revenue drivers.

Earnings/Net Income

Mawson reduced its losses significantly, reporting a net loss of $310,863 in Q1 2025 compared to a $19.97 million loss in the same period last year. This narrowed loss indicates a positive shift in earnings per share, improving from a $1.19 loss to just $0.02, showing a promising turnaround.

Price Action

The stock price of Mawson has climbed 6.31% during the latest trading day, has climbed 3.07% during the most recent full trading week, and has surged 47.44% month-to-date.

Post-Earnings Price Action Review

Mawson's strategic approach of buying when revenues exceed expectations has shown potential, supported by substantial growth in digital colocation and energy management revenues in Q1 2025. This aligns with the company's financial performance and operational expansion, suggesting potential short-term gains. The digital colocation revenue grew by 27% year-over-year, and energy management increased by 24%, reflecting strong market demand. The execution of a new customer agreement for colocation services enhances Mawson's service offerings and revenue potential. Mawson achieved a significant financial turnaround with a $0.6 million income from operations, contrasting with a $7.7 million loss the previous year. The focus on carbon-free energy solutions and digital infrastructure positions Mawson for future growth. Despite positive momentum, investors should consider financial volatility and market risks that may impact short-term stability.

CEO Commentary

Rahul Mewawalla, CEO and President of Mawson Infrastructure Group Inc., expressed satisfaction with the company’s performance in Q1 2025, highlighting a 27% year-over-year increase in digital colocation revenue and a 24% growth in energy management revenue. He emphasized the successful execution of a new three-year customer agreement, significantly enhancing the company’s digital colocation services. Mewawalla noted the transformation of the company, reporting a positive income from operations of $0.6 million, a stark contrast to the loss from operations of $7.7 million in the same quarter last year. He conveyed optimism regarding Mawson's strategic position in the AI and HPC sectors while reinforcing the commitment to carbon-free energy solutions.

Guidance

Mawson Infrastructure Group Inc. expects continued revenue growth, targeting approximately $13.8 million for Q2 2025, maintaining momentum from the previous quarter’s revenue of $13.8 million. The company anticipates further improvements in operational capacity, expanding to a total of 153 MW upon completion of ongoing developments. Mewawalla indicated that the focus will remain on enhancing digital colocation services and addressing the compute capacity needs of enterprise customers, ensuring sustained strategic growth in the coming quarters.

Additional News

Mawson Infrastructure Group Inc. has recently signed a significant 3-year digital colocation agreement with Canaan Inc., involving the hosting of approximately 17,453 latest-generation ASICs, utilizing about 64 MW of compute capacity. This partnership follows a 136% year-on-year growth in Mawson's digital colocation business. The company is expanding its operations, with a new site in Ohio adding 24 MW to its current capacity of 129 MW, potentially reaching 153 MW upon completion. This agreement marks a strategic expansion into the PJM market, one of North America's largest competitive wholesale energy markets. The partnership leverages Mawson's infrastructure capabilities and Canaan's hardware innovation, enhancing Mawson's market position and financial profile.